The Federal Board of Revenue (FBR) has taken decisive steps to counter tax evasion within the sugar industry, by deploying monitoring teams to sugar mills across the country, according to a prèss release issued on Wednesday.
Sugar, identified as a notified product, is subjected to rigorous monitoring, covering production, sales, clearances, stocks, and related activities. The press release emphasizes the mandatory affixation of tax stamps on every bag of sugar produced or supplied.
Violation of this requirement constitutes a punishable offense under Section 33(23) of the Act, with products liable to confiscation. Convicted defaulters may also face imprisonment for up to three years.
The FBR, invoking Section 40-B of the Sales Tax Act 1990, has tasked its field formations with monitoring the sales of sugar production in all sugar mills nationwide. Tax officers at these mills will scrutinize stock clearances through a manually installed system of tax stamps on sugar bags.
Under the enforcement provision of the sales tax law, the FBR or chief commissioner has the authority to assign an officer of Inland Revenue to the premises of a registered person or a class of such persons to monitor production, sales of taxable goods, and stock positions.
The initiative aims to ensure compliance with tax regulations and enhance transparency within the sugar industry.
Impressive move by the FBR to combat tax evasion in the sugar industry. The deployment of monitoring teams, insistence on tax stamps, and penalties for non-compliance show a serious commitment to enforcing regulations. This initiative not only tackles tax evasion but also promotes transparency, a crucial step for the industry’s sustainable growth. Kudos to FBR for taking decisive actions.
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